Russia is a major exporter of crude oil, and Russian crude oil is exported to many parts of the world. However, as per the latest news released on Friday, the European Union (EU) has announced a ban on imports of fuels made from Russian crude oil and those coming from third countries except for Canada, Norway, Switzerland, the United Kingdom, and the United States. However, this ban is not only limited to the Russian market but is also impacting India as the move could severely hit India’s fuel exports to Europe, given the significant share of Russian crude in India’s oil import basket.
Impact on India’s Fuel Exports
As per the report issued by the economic research institute Global Trade Research Initiative, the new restrictions imposed by the European Union on Russian oil could hamper India’s export of petroleum products worth $ 15 billion. Apart from India, this decision by the EU is also expected to affect countries like Turkey and the UAE because these countries also buy crude oil from Russia and sell diesel, petrol, and jet fuel.
In the financial year 2023-24, India exported petroleum products worth $ 19.2 billion to the EU. This decision by EU is likely to impact the export of petroleum products by India to Europe and has increased the concerns and discussions about the export of petroleum products by India to Europe.